Nickel 28 Capital talks royalty portfolio

Executive Summary

• Nickel 28 Capital Corp. provided a strategic update on its royalty portfolio, highlighting the growing importance of critical minerals like scandium and cobalt amidst shifting global trade policies and protectionist trends.
• The company highlighted specific developments across its portfolio, including regulatory milestones for the Nyngan scandium project, drilling approvals for the Flemington project, and strategic support for the Dumont Nickel project from the European Commission and Quebec government.
• CEO Craig Lennon emphasized the strategic value of scandium and cobalt, noting recent high-profile scandium offtake agreements and strengthening cobalt prices driven by supply constraints in the DRC.

Key Details

• Strategic Context: CEO Craig Lennon noted that countries including the US, China, India, and EU members are adopting protectionist approaches to critical minerals.
• Scandium Market:
  • Nickel 28 holds royalties on two scandium-bearing projects near Sunrise Energy Metals' Syerston project in Australia.
  • Sunrise Energy Metals granted Lockheed Martin an option to purchase up to 15 tonnes of scandium oxide over five years.
  • Scandium is highlighted for uses in aerospace alloys, defense systems, and clean energy fuel cells.
• Cobalt Market:
  • Cobalt prices have strengthened due to rising demand and tightening supply following export restrictions in the Democratic Republic of the Congo (DRC), which accounts for ~80% of global output.
  • Nickel 28 has significant exposure to cobalt via the Ramu nickel project and other portfolio royalties.
• Dumont Nickel Project (Quebec, Canada):
  • Welcomed visit by Quebec Premier Francois Legault, who encouraged technical, financial, and regulatory steps toward a final investment decision.
  • Hydro-Quebec confirmed reservation of a power block for the project; discussions aim to finalize an agreement this fall.
  • Selected by the European Commission as one of 13 critical minerals projects in third countries to receive coordinated support (finance access and off-taker contacts).
• Giga Metals Corp. (Turnagain Project, BC, Canada):
  • Closed a non-brokered private placement.
  • Will undertake a geophysics program (magnetotelluric survey) at the flagship Turnagain project to map subsurface structures adjacent to the known nickel-cobalt deposit.
• Australian Mines Ltd. (Flemington Project, Australia):
  • Secured approvals to commence drilling at an underexplored target area.
  • Paves the way for an approximately 1,000-metre drill program at one of the world's highest-grade scandium resources.
• Scandium International Mining Corp. (Nyngan Project, NSW, Australia):
  • Granted mining licence ML 1893 by the NSW Department of Primary Industries and Regional Development.
  • Provides regulatory certainty to advance dialogues on strategic partnerships, offtake contracts, and financing for a final investment decision.
• Portfolio Overview:
  • Nickel 28 holds an 8.56% joint venture interest in the producing Ramu nickel-cobalt operation in Papua New Guinea.
  • Manages a portfolio of 10 nickel and cobalt royalties on development and exploration projects in Canada, Australia, and Papua New Guinea.

Notable Quotes

• "Over the past 12 months, a number of countries, led by the United States, China, India and other BRICS nations, as well as several members of the European Union, have introduced significant changes to trade and foreign policy. Many of these initiatives reflect a growing protectionist approach to the development and control of rare earth element (REE) and critical mineral projects." — Craig Lennon, CEO
• "Scandium is among these key materials, with important uses in aerospace alloys, advanced defence systems and clean energy fuel cells." — Craig Lennon, CEO
• "These market developments contribute to a constructive short-to-medium-term outlook for cobalt. Nickel 28 is well positioned to benefit through its significant exposure to cobalt via the Ramu nickel project and multiple royalties within its portfolio." — Craig Lennon, CEO